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State Government | Not Classified - india | PID: 171726
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Value: 300 Crore | Concerned over the downward trend in urea consumption, public sector fertiliser company Fertilisers and Travancore Limited (FACT) will implement its proposed urea plant only after analysing the fluctuations in the market of urea. The company is now giving priority to the proposed Rs 300 crore Factamfos plant, which will augment production of the company’s flagship product Factamfos to one million tonnes a year from 7 lakh tonnes by 2020
It does not mean FACT has abandoned or shelved the project for urea plant. It will not be implemented immediately. Urea consumption is also showing a downward trend. The urea plant will be implemented as a long- term project,” D Nandakumar, director of marketing, FACT told
Huge investment required for the plant is also a concern for the company. “The Factamfos plant is coming up utilising the fund mobilised through handing over of surplus land owned by FACT at its Cochin Division. With regard to the urea plant, there are two option before us - either convert existing ammonia plant as urea plant or construct a new one. While conversion is much cheaper, new plant requires a huge investment
A medium capacity urea plant requires investment of nearly Rs 5,000 crore. Besides, the proposal for the urea plant is still under consideration of the Union government,” he pointed out. Meanwhile, the Save FACT Action Committee, a forum of trade unions, recently visited the Kerala chief minister with an appeal to get clearance for the urea plant from the Centre. FACT had been operating a urea plant till 2003. The company shut down the plant due to high cost of power. Steps to scrap the plant also did not succeed because of litigations
| Updated on: 28 - Dec - 2017
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